unit 4 flashcards

Created by: geogt002
Created on: 29-03-17 16:37

what is the relationship between productivity and labor costs per unit?

labor productivity is a measure of economic growth within a business. labor cost per unit is how much it costs for labor per item being produced.

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name 3 ways a rise in the minimum wage may affect workforce performance...

labour turnover is decreased because people will want to work longer hours, labour productivity willincrease because emplyees would want moremoney. employee costs will rise as they will have to py staff more potentially.

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what is the calculation for labor productivity?

output per period( total output) /number of employees at work

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what is the calculation for labor cost per unit?

total labour cost/ units of output

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what is the calculation for employee costs as percentage turnover?

employee cost/sales turnover x 100

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the higher the demand the higher the...

selling price

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name 5 reasons as to why labor productivity matters...

get the best out of employees, reduce labor costs per unit, the higher the output per employess, the lower the labour costs per unit, the higher the productivity the lower the labor cost per unit

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what are some issues with increasing labour productivity?

lower quality due to being rushed so mistakes can be made,replaced by technology,demotivation of staff,more money spent on pay( labor cost increased0)

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Other cards in this set

Card 2

Front

name 3 ways a rise in the minimum wage may affect workforce performance...

Back

Card 3

Front

what is the calculation for labor productivity?

Back

Card 4

Front

what is the calculation for labor cost per unit?

Back

Card 5

Front

what is the calculation for employee costs as percentage turnover?

Back

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unit 4 flashcards